A U.K Competition and Markets Authority inquiry group on Tuesday provisionally recommended that the regulator should consider investigating Amazon Web Services (AWS) and Microsoft's Azure cloud unit under new digital markets legislation.

Amazon Inc. and Microsoft Corp.’s UK cloud service offerings are facing closer scrutiny in the UK as the watchdog said it had concerns over their market dominance.

The UK's Competition and Markets Authority (CMA) has announced its preliminary findings that the cloud services market "is not working as well as it could be." That relatively vague statement follows a 16-month investigation into the UK's cloud services market,